Correlation Between Robertet and Amoeba SA

Can any of the company-specific risk be diversified away by investing in both Robertet and Amoeba SA at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Robertet and Amoeba SA into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Robertet SA and Amoeba SA, you can compare the effects of market volatilities on Robertet and Amoeba SA and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Robertet with a short position of Amoeba SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Robertet and Amoeba SA.

Diversification Opportunities for Robertet and Amoeba SA

-0.85

Correlation Coefficient

Robertet  Amoeba SA

Pay attention - limited upside

The 3 months correlation between Robertet and Amoeba is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Robertet SA and Amoeba SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amoeba SA and Robertet is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Robertet SA are associated (or correlated) with Amoeba SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amoeba SA has no effect on the direction of Robertet i.e., Robertet and Amoeba SA go up and down completely randomly.

Pair Corralation between Robertet and Amoeba SA

Assuming the 90 days trading horizon Robertet SA is expected to under-perform the Amoeba SA. But the stock apears to be less risky and, when comparing its historical volatility, Robertet SA is 5.85 times less risky than Amoeba SA. The stock trades about -0.25 of its potential returns per unit of risk. The Amoeba SA is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  79.00  in Amoeba SA on September 26, 2024 and sell it today you would earn a total of  9.00  from holding Amoeba SA or generate 11.39% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	95.65%
Values	Daily Returns

Robertet SA  vs.  Amoeba SA

Robertet SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Robertet SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Amoeba SA

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Amoeba SA are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Amoeba SA reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Robertet and Amoeba SA

The main advantage of trading using opposite Robertet and Amoeba SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Robertet position performs unexpectedly, Amoeba SA can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Amoeba SA will offset losses from the drop in Amoeba SA's long position.

The idea behind Robertet SA and Amoeba SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Fundamental Analysis module to view fundamental data based on most recent published financial statements.